Application of The City of Yakima Under the 2013 SCASD Grant Program

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### TABLE OF CONTENT S

Introduction /Summary : City of Yakima, Legal Sponsor Page 2

Overview of the Yakima Market Page 3

Yakima Air Terminal Catchment Area Page 3

Alaska Airlines at Yakima Page 4

Yakima Load Factor History Page 5

Market Leakage from YKM Page 5

Yakima Meets All Eligibility Requirements for Grant Page 6

Why is Air Service Important to Yakima? Page 6

Average Fares Page 7

Strategic Plan for Development of Yakima Air Service Page 9

Improve Exi sting Alaska/Horizon Schedule Page 9

Strengthen Alaska

- Yakima Partnership Page 13

Add Additional Flights to SEA Markets Page 13

Add Additional Alaska Markets Such as PDX Page 1 4

Introduce a New Entrant Carrier to Non

- competing Hubs Page 1 5

Yakima Air Service Development Efforts For the Last 3 Years Page 1 5

Summary of Yakima Strategy Page 1 6

Strategic Plan Budget Page 1 7

Strategic Plan Cash Budget Page 1 8

Sources of Funds Page 1 8

Uses of Cash Funds Page 1 8

Airport Status Page 1 9

Letters of Support AttachmentsApplication of The City of Yakima Under the 2013 SCASD Grant Program

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Ms. Brooke Chapman

Associate Director

Small Community Air Service Development Program

U.S. Department of Transportation

8th Floor, Room W86

- 307

1200 New Jersey Avenue SE,

Washington D.C. 20590

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Dear Ms. Chapman,

The C ity of Yakima, as the owner of the Yakima Air Terminal

– McAllister Field hereby submits an

application for a Small Community Air Service Development Program grant. This is the first request

Yakima has made for Federal air service development grants since the inception of the program.

Currently the Yakima Air Terminal (YKM) has service on Alaska/Horizon to Seattle with three flights a

day. Unfortunately, the average scheduled departures to SEA has consistently declined in the past 10

years, from 7 departu res a day in 2004 to 6 through 2008, 4 through 2010, and currently 3 per day. The

impact was predictable, that the Yakima air travelers are primarily driving the 154 miles to Seattle, over an

often closed mountain pass. In 2001, 46% of the Yakima air trave lers drove to alternate airports. A study

in 2004 estimated that number increased to 58%, and the most recent surveys, taken this year

, estimated

the leakage at 72%, with over 2/3rds of those travelers driving to Seattle.

With the decline in scheduled dep artures and increase in leakage to alternate airports, the Yakima

Seattle load factors have declined to over 10 points lower than Alaska Airlines’ system average, signaling

the entire service could be in danger of elimination unless the Yakima interests ta ke immediate action,

and we have.

Over the recent past, however, s ince 2007, Yakima

, and it s market catchment area

, has funded

development of commercial aviation through participation of private and public entities. This includes the

consortium that rais ed $650,000 in incentives to bring Sky West/Delta to Yakima, and operate nonstop

service to their hub in Salt Lake. Unfortunately, even though the service produced enough demand to

sustain its operation, the service was dropped in the fall of 2008 due to t he combination of a deep

recession and Delta’s merger activities with Northwest.

Yakima is at a critical crossroads with its air service development. We are qualified to participate in the

SCASD grant program, have a history of strong private/public partnerships to support air service, and

have proven in the following pages, that we are an excellent fit for the objectives of the program. We

sincerely hope you agree and give Yakima, WA favorable consideration.

Regards,

Original signed by

SEAN HAWKINS

Sean Hawkins

Legal Sponsor

Small Community Air Service Development Program

City of Yakima

Economic Development Manager

129 N. Second Street

Yakima, WA 9890 1Application of The City of Yakima Under the 2013 SCASD Grant Program

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### Overview of McAllister Field and the Yakima (YKM) Market Area, and why YKM

qualifies for a Small Community Air Service Development Grant in 2013.

Yakima Air Field (YKM), also known as McAllister Field, is located in central

Washington, serving the City and County of Yakima, as well as the surrounding areas

The Yakima Air Terminal catchment ar e a maint a ins a population base of 260,000

which encompasses 3 0 zip codes. The following identifies the Yakima Air Terminal

catchment area.



## Y AKIMA 

## A IR 

## T ERMINAL 

## C ATCHMENT 

## A REAApplication of The City of Yakima Under the 2013 SCASD Grant Program

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- 0120 Page 4 The current scheduled service by Horizon has been reduced to an average of three

departures per day using 76 seat Q400’s to Seattle (SEA). Since 200 7 , Horizon has

reduced departures from six per day, due to the replacement of the smaller 37 seat

Q200’s with the larger aircraft.

While the reduction in departures slightly increases the total seats per day offered by

Horizon to Seattle, load factors, consistently in the low 70%, are still well below the

average of 86.5%.

Prior to 2005, Horizon scheduled 7 departures a day, reducing that number to 6 the

following year. There fore, the departures have been declining in Yakima for almost a

decade with the trend continuing in 2010

- 2013.

Consistent with the decline in scheduled frequencies, the average Horizon load factor

has also been erratic, declining from 2008 through 2010, and then increasing with the

reduction in seats starting in the 1 st quarter, 2011.

In addition to the Horizon/Alaska service, Sky West/Delta operated Salt Lake

- Yakima

from June 2007 through September 2008 using an air service incentive program 100%

f unded by the private Yakima interests . More detail on that important service is later in

this document.

0 1 2 3 4 5 6 7 Ave. Daily Depts

Quarter



## Alaska Airlines at Yakima

Average Daily Depts

From 1Q2005 through 1Q2013

Source: DOT T100 Data

Average Daily Depts Linear (Average Daily Depts)Application of The City of Yakima Under the 2013 SCASD Grant Program

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- 0120 Page 5 The result of reduced schedule options to the Yakima market has increased leakage, or

diversion from Yakima Air Terminal to other airports, primaril y Seattle, based on a 2013

Passenger survey by RRC Associates of CO and commissioned by The City of Yakima. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Axis Title 

### Yakima Load Factor

By Quarter for Horizon & Sky West/Delta

1Q2005 though 1Q2013

Source: DOT Table T100

Horizon Sky West Horizon begins phasing

Q400's for Q200's, reduces

departures to 4 daily Horizon operates all

Q400's, reduces departures

to 3 dailyApplication of The City of Yakima Under the 2013 SCASD Grant Program

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- 0120 Page 6 A 2005 study estimated that 58% of Yakima and Kittitas Counties’ passenger

traffic leaked in 2004, and in 2001 a similar study estimated 46% leakage. That

number is now up to 72%. Therefore Yakima is losing its originating market share, as

well as scheduled departures, and the number of commercial airlines . D espite private

and public efforts to support the airport, Yakima now needs to strengthen that initiative

with a Small Community Air Service Development Program grant.

Yakima meets all eligibility requirements for a SCASD Program Grant

 The City of Yakima, as the legal sponsor of the SCASD Program, has met all t he

registration requirements to respond to Docket DOT

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Grant Application.

 Air Fares from YKM are higher than similar communities.

 Since 1997, YKM is not larger than a small hub airport . Yakima Air

Terminal/McAllister Field is liste d as a ‘Non

- hub Primary Airport in the NPIAS

 YKM has never received any direct benefits from a SCASD Program grant

 YKM is not an EAS subsidized community

 The Yakima market area has established a consortium of public and private

interests supporting air service development.

 Y akima’s Air Development Marketing program initially covers a 2 year period

 A Yakima Consortium will contribute at least $200,000 matching funds in cash

over the 2 year period

.  The SCASD Program grant will increase access to a larger s egment of the

national transportation system by the Yakima Catchment area.

 The Yakima market area covers multiple communities.

Why is Air Service Important to the Yakima Market?

 The nearest airport with direct access to the National Transportation System is

Seattle (SEA). Surface transportation can be very difficult during much of the

year since it requires travel over Snoqualmie Pass, which is periodically

closed, not only in win ter months for avalanche control, but other periods of

the year due to accidents, and construction work. Over the past 6 years,

Snoqualmie Pass has clo sed an average of 150 hours per year. While this does not

appear to be excessive, it should be emphasized that a 1 to 2 hour closure can

disrupt scheduled travel plans.

 In addition to SEA, the other alternatives for air transportation are Tri Cities (PSC) or

Walla Walla (ALW ).

 Driving distance to SeaTac is 1 5 2 miles, with an estimated travel time of 2:3 4

.Application of The City of Yakima Under the 2013 SCASD Grant Program

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- 0120 Page 7  D riving distance to Pasco is 83 miles with estimated travel time in good weather

of 1:2 1.

 Driving distance to Walla Walla is 133 miles with an estimated drive time of 2:18.

 PSC is served by United, Delta, and Alaska with scheduled nonstop service to

Seattl e, Salt Lake City, Denver, Minneapolis , and Portland and enjoys lower

average fares than Yakima passengers.

 The population of the City of Pasco is only 60,000, while Yakima is over 90,000.

AVERAGE FARES: Yakima vs Pasco, 12 months ended 3Q2012

Top 20 O&D Yakima Markets

(BOI not shown due to lack of PSC Data)

Destination YKM PSC Variance %

SEA $ 84.92 $ 103.11 $ (18.19)

- 21%

PHX $ 167.82 $ 157.51 $ 10.31 6%

LAS $ 171.72 $ 95.00 $ 76.72 45%

LAX $ 182.64 $ 100.72 $ 81.91 45%

SAN $ 186.03 $ 184.14 $ 1.89 1%

SNA $ 164.61 $ 133.96 $ 30.66 19%

IFP $ 138.80 $ 135.49 $ 3.31 2%

SMF $ 192.17 $ 191.53 $ 0.65 0%

DEN $ 198.56 $ 225.64 $ (27.08)

- 14%

ORD $ 285.15 $ 283.11 $ 2.04 1%

OAK $ 173.42 $ 181.71 $ (8.29)

- 5%

ANC $ 351.52 $ 323.16 $ 28.36 8%

SFO $ 178.20 $ 113.21 $ 64.99 36%

SJC $ 168.27 $ 174.51 $ (6.24)

- 4%

ONT $ 180.41 $ 138.36 $ 42.05 23%

DFW $ 290.25 $ 250.55 $ 39.70 14%

PDX $ 133.82 $ 143.25 $ (9.43)

- 7%

BUR $ 176.42 $ 157.93 $ 18.49 10%

MCO $ 363.85 $ 280.15 $ 83.70 23%

 In addition to the higher average fares in 14 of 19 markets, the cost of driving the

extra distance must be factored into the total travel cost for the Yakima air travelers.

At $0.56 a mile time s 142 miles ( 152

- 10), that adds another $ 80 each way plus

parking . This assumes the local Yakima traveler drives an average of 10 miles to fly

out of McAllister Field

.  While the above represents the high fare situation facing the Yakima market as

compared to the closest airport, another way of demonstrating the issue is to

compare YKM

- SEA with similar markets as defined by the Order. Using 1 st Quarter

2013 BTS O&D Survey data, the average fare of the 103 mile SEA market was

$97.47 compared to $81.77 in markets of 102 miles.Application of The City of Yakima Under the 2013 SCASD Grant Program

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- 0120 Page 8  The diverse Yakima economy is increasingly d ependent on frequent,

convenient air service. While Yakima still relies on agriculture to drive its economy,

over 250 manufacturing firms are also located in the Yakima Catchment Area

, producing a variety of products including aircraft parts, wood products, plastic

products, recreational vehicles, and communications technology. Tourism is the

fastest growing segment of the Yakima economy. More than 70 wineries are located

in the Yakima Valley and regularly draw visitors to sample and buy internationally

renowned varietals. Outdoor recreation, including water and snow skiing, fishing,

boating, hiking, horseback riding, and white water rafting, also makes Yakima a

favorite destination.

 Education is important to the Yakima catchment area and heavily dependent on

reliable air service. In grades K through 12, the National Principal of the Year, as

well as National Teacher of the Year, work and teach in the Yakima School District.

Yakima is also the h ome of a number of institutes of higher education, including:

o Yakima Valley Community College, enrollment 6,100 students

o Central Washington University, enrollment 7,242 students

o Perry Technical Institute, enrollment 400 students

o Heritage College, enrollment 1,100 students

o Sakie International College of Cosmetology, enrollment unknown

o City University, enrollment, 100 students

 According to a recent study by the Yakima Convention and Visitors Bureau, the

average visitor, no matter how they travelled to Yak ima, had basic expenditures of

$300

- $400 per person. Therefore, a 50% improvement to the existing air service

should produce an estimated 30,000 visitors per year , or about $12 million

directly into the local economy , not including the trickledown effect to the

economy.Application of The City of Yakima Under the 2013 SCASD Grant Program

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- 0120 Page 9 STRATEGIC PLAN FOR DEVELOPMENET OF YAKIMA AIR SERVICE

Priorities and Ob jectives :

1) Improve performance on existing Alaska/Horizon Seattle Schedule to assure

long term stability.

2) Strengthen Alaska

- Yakima partnership through joint marketing and

promotional programs

3) Add one to two Alaska flights to the YKM

- SEA market t o a targeted total of 5

per day, or alternatively implement PDX service from #4 below.

4) Add a new Alaska destination s uch as Portland, OR (PDX) , either nonstop of

direct through SEA.

5) Add a new commercial carrier and a new hub destination such as Salt Lake

City, Denver, or Dallas, facilitating more direct service East and South.

1. Improve performance on existing Alaska/ Horizon Schedule.

This top priority of the Yakima Strategic Plan is critical to the basic structure of the

Yakima air service development since it connects the YKM passengers with much of the

National Transportation System. However, for many of the key markets, the routing is

very circuitous

, particularly for the destination s e ast of Yakima. Over 42% of Alaska’s

entire route system flows through the ir SEA hub

.

Currently Alaska/Horizon schedules 3 flights per day in Yakima that are showing an

average load factor (72%), well below the AS average of 86.5%, and therefore could be

at risk of being further reduced or eliminated

.

Convenient, frequent service to the Seattle hub is critical to access of the Yakima

market to a wide range of destinations in the National transportation system. See

Alaska’s SEA route map below. The current pattern of YKM

- SEA service has 5 to 7

hour gaps between flights and forces many air travelers to seek alternatives.Application of The City of Yakima Under the 2013 SCASD Grant Program

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- 0120 Page 10 There are mitigating factors that help support the continuation of the existing service.

These are:

 The YKM market has been consistently served by Horizon/Alaska for more than

25 years, establishing a close

, long term partnership between the two entities.

 There is substantial potential for increased loads at the Yakima Air Terminal

based on the high percentage of leakage overall (72%, with the majority to SEA

(51%).

 The Yakima market area consists of 250,000

- 270,000 residents, strong enough

demographics to su pport a substantial increase in service.Application of The City of Yakima Under the 2013 SCASD Grant Program

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- 0120 Page 11  The YKM flights feed the primary SEA connecting banks, therefore providing a

high percent age of beyond segment passengers and revenue.

The RED LINE shown above represents the arrivals of the YKM flights into SEA.

While the arrivals are very well scheduled for a 3x per day schedule, they are 5 to 7

hours apart. The early morning, at 0640, is critical to meet ing the largest connecting

bank for AS at SEA. Also, it should be emphasized the arrivals are a function of the

timing of the SEA

- YKM departures, which are timed to meet the YKM inbound

connections shown in the chart on the next page.

The Alaska Airlines Planning and Scheduling department has be en very responsive to

Yakima’s needs by maximizing connection opportunities in Seattle. In fact, the important

early morning departure from Yakima, which is funded by an overnight aircraft leaving

SEA at 2310, costs Alaska a double crew as there is not a s ufficient rest period. That

totals hundreds of thousands of dollars a year, demonstrating Alaska’s willingness to

strengthen the Yakima feed traffic.

0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:0

0 11:0

0 12:0

0 13:0

0 14:0

0 15:0

0 16:0

0 17:0

0 18:0

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0 20:0

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0 22:0

0 23:0

0

Depts 0 0 0 0 0 0 17 49 26 15 23 21 17 20 27 18 10 15 14 29 19 10 14 8 0:00 0:00 0:00 0:00 0:00 0:00 0:00

AS Departures 

## Alaska SEA Departures

- June 2013

YKM Arrivals in SEA

06:40

11:35

18:51Application of The City of Yakima Under the 2013 SCASD Grant Program

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- 0120 Page 12 The RED LINE shown above represents the departures of the SEA flights into YKM.

As with the YKM Arrival pattern, the departures from SEA to YKM are 6 to 7 hours

apart, creating long layovers for many of the returning travelers, and exacerbating the

72% leakage from YKM described earlier

.

Given three frequencies a day, the timing o f both the outbound and inbound Yakima

flights maximizes the market coverage, particularly the connecting opportunities to the

National air transportation system. Unfortunately, this pattern continues to leave gaps in

the schedule.

 The Yakima community h as consistently supported air service :

 Hired a leading transportation consultant in 2005 to study the Yakima

air service market

 Contracted with Airplanners LLC, a consulting firm specializing in air

service development for small communities , in 2013

 Devel oped a FLY YKM Marketing Program in 2013

 Formed an Airport Advisory Committee of prominent private and public

leaders. 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

Arrivals 0 2 0 0 1 6 4 2 7 17 15 28 13 11 12 11 15 13 15 13 37 42 19 17 0 5 10 15 20 25 30 35 40 45

Seattle Arrivals 

## Alaska's Seattle Arrivals by Hour

- June, 2013

Dept to YKM

0950

1705

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 Supported the Delta

, Salt Lake service in 2007

- 2008

 Contributed $150,000 in cash from private funds

 Developed a travel account of 92 busi nesses in the Yakima

area that contributed $500,000 for travel costs.

 The Delta

- Northwest Merger was announced in April, 2008, the

same year the YKM

- SLC service was dropped by Delta in

September, 2008. Therefore, the service appeared more a

victim of the merger than economics as the load factors were

close to 80%, feeding a major hub with long haul traffic

.

Given all the positives, the overriding consideration for Alaska/Horizon, or any other

airline considering increased service, is financial. The fact that a YKM

- SEA segment

load factor in the low 70 th percentile , versus a system average of over 86%

presents an immediate need to implement the Yakima Strategic Plan with The

Alaska Airlines Group

.

2. Strengthen Alaska

- Yakima partnership through j oint marketing and programs

Alaska’s Marketing Department has committed cooperation in coordinating a marketing

program within Yakima County and an inbound visitor campaign to the region. Alaska

has agreed to perform the role of an ad agency and production firm at no cost to the

City of Yakima. They will also offer special fares during certain periods, and passenger

data and insight on how the marketing program is affecting load factors. The City of

Yakima will have the final review of ad messages. Alaska is thrilled that the Yakima

community is willing to pursue a partner ship through a marketing campaign to insure

better load factors and in turn improved service. The requested SCASD Program

grant funding will allow the development of promo tional fares, advertising

campaigns, traffic studies , and other initiatives to incre ase YKM demand.

3. Add one to two Alaska flights to the YKM

- SEA market to a targeted total of 5

per day , or as an alternative initiate #4 to PDX, below.

The long term Alaska/Horizon schedule in the YKM

- SEA market averaged 6 departures

a day, however the aircraft was 37 seat Dash

- 8 Q200’s, an older model of the turbo

prop aircraft that was phased out of the market three years ago and replaced with the

76 seat Dash

- 8 Q400’s.

While it was a reasonable move by Alaska /Horizon to replace 222 seats (6x37) wit h 228

seats (3x76), the resulting schedule, as seen in previous sections of this Application,Application of The City of Yakima Under the 2013 SCASD Grant Program

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- 0120 Page 14 has been less than ideal from a passenger’s perspective. Therefore, the solution, to

restore the original 5

- 6 x schedule requires a number of steps. These are:

1. In crease the current load factor on the current 3 flights

2. Add a fourth flight, preferably in mid afternoon to evening. Recent local surveys

conducted under contract by the City of Yakima indicate a desire to restore the

evening flights, filling the gap from SEA between 1700 and 2300. It should be

noted that Alaska did move the 2300 earlier for a short period, wit h mixed results.

While it allowed for an earlier arrival in YKM, it risks stranding returning

passengers in Seattle for the night. It was then returned to the 2300 hour. The

key point, however, is that Alaska listened to the requested changes by the

Yakima representatives, and took positive action.

3. Additional flights can only be added upon successful performance of the four

flight schedule. The 76 seat aircraft are simply too large to add multiple

frequencies in the same schedule.

4. Realistically, the 5 + flight schedule as defined by the Yakima Strategic Plan will

not be realized until the latter part of the program.

4. Add a new Alaska destination such as Portland, OR (PDX)

This 4 th step or alternative to #3 above to the Strategic Plan can be approached in two

ways.

1. The PDX service can be added instead of additional SEA frequencies

a. At least one nonstop round trip from YKM

b. Tag PDX to YKM

- SEA creating one

- stop service and adding direct

frequencies in the YKM

- PDX mar ket.

2. The PDX service can be added after successfully increasing the SEA

frequencies to 4 or 5 per day.

3. A 2013 YKM passenger survey commissioned by The City of Yakima showed

Portland was the overwhelming preference for the next new destination.Application of The City of Yakima Under the 2013 SCASD Grant Program

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- 0120 Page 15 5. Add a new commercial carrier and a new hub destination such as Salt Lake

City, Denver, or Dallas, facilitating more direct service East and South.

This fifth step of the Strategic Plan addresses a number of intriguing possibilities. The

goal here is not to add competition to Yakima’s primary partner, Alaska, but to materially

benefit a broad segment of the communities’ travelling public. A target hub of Salt L ake

via Delta, Denver via United , or Dallas via American will eliminate many of the circuitous

routings to the East and partially to the South ; and certainly reduce gro und

transportation to SEA, 1 54 miles , or almost 3 hour drive, from YKM. The result is a

substantial reduction in Vehicle Miles Travelled or VMT’s.

These connecting hubs provide convenient service to many of YKM’s top O&D markets:

Non e of the aforementioned options directly impact the Alaska markets, and will

certainly reduce vehicle miles travelled, passenger leakage to SEA, and increase

the local economy of the Yakima catchment area, including business and leisure

travel as well as educational institutions.

Yak ima Air Service Development Efforts over the Last 3 Years

Since 2011, t here have been a number of actions that impact the development of air

service at McAllister Field. These include:

 2011

- 2013: Yakima representatives continue their ongoing discussions with

Alaska Air Group, at least twice per year.

 2012: City of Yakima hired an Economic Development Manager to work with the

McAllister Field staff, Alaska Airlines, consultants, and government officials to

promote air service development.

 2012: City of Yak ima hires a new City Manager with a track record of promoting

air service development.

 2012: The City and County of Yakima issued an RFP for Air Service

Development & Consulting Services.

 2013: The County of Yakima transferred ownership of McAllister Fiel d to the City

of Yakima to allow for more focused air service development programs

 2013: The City retained Airplanners LLC, a highly respected Air Service

Development consulting firm specializing in promoting commercial air service

from small communities.

 2013: City officials or their representatives are in constant contact with Alaska

Airlines, with communications every week.Application of The City of Yakima Under the 2013 SCASD Grant Program

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- 0120 Page 16  2013: Formed Airport Advisory Committee of Yakima business and government

leaders to meet on a quarterly basis with The City Manager, Manager of

Economic Development, and Airport Director regarding air service development.

 2013: City of Yakima hired RRC & Associates to conduct air service focused

surveys with:

o Air Travelers

o Local Busi nesses

o The Lodging Association

 In total, over 400 individuals were surveyed resulting in the following findings:

o 72% of the air travelers from Yakima fly out of other airports

o 70% of the 72% drive to Seattle to start their trip

o Many Yakima travelers do not want to wait in Seattle for long layovers

o Recommended improvements to the airport facilities

o Recommended improvements to the Alaska schedule

o Were dissatisfied with the high fares.

o Only 18% of air travelers drove to Pasco to start their trip.

o Recommended P ortland as their next destination choice.



### Summary of Yakima Strategic Plan

Year 1

– September, 2013

– August, 2014

 Meet with Alaska/Horizon to detail action items for air service improvements

o Schedule adjustments if needed

 Propose addition of Portland service

 Nonstop to PDX

 Tag to existing SEA

- YKM flights

o Promotion of the Yakima air service

o Revenue incentives to Alaska for YKM service

o Yakima promotions on respective web sites

o Alaska to develop advertising content with YKM approval.

 Radio and print advertising in Seattle and Yakima c atchment area

.  Start proprietary travel card program.

Year 2

– September, 2014

– August, 2015

 Continue to strengthen the Alaska Airlines partnership and implement SEA/PDX

schedule improvements.

 Begin discussions with a potential 2 nd commercial airline:

o United Airlines to Denver

o Delta Airlines to Salt Lake City

o American Airlines to DallasApplication of The City of Yakima Under the 2013 SCASD Grant Program

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- 0120 Page 17  New routes would focus on access to the Southeast and Eastern US

Destinations.

 Yakima would provide first year incentives to new entr ants such as waiving rents

and landing fees.

 Develop an advertising campaign for the new service

 Expand the proprietary travel card program from Year 1.

Yakima Strategic Plan Budget

Sources of Funds

Examples of non

- airport sources of cash are the following FLY YKM campaign

.

 City of Yakima

 Greater Yakima Chamber of Commerce

 Yakima Lodging Association

 Yakima Convention & Visitors Bureau

 Members of the Airport Advisory Committee

 Office of Economic Development

 Individual Businesses

 Private Educational Institutions

 Business Interests from the Yakima Catchment Area

Non

- airport sources will contribute a total of $200,000 in cash as well as another

$ 4 50 ,000 from in

- kind sources. The source of cash contributions is the FLY YKM

Campaign, similar to the organization developed for the Delta service to Salt Lake City

in 2007

- 2008. In that campaign, 92 organizations in the Yakima Catchment area

contributed a total of $150,000 in cash as we ll as deposited additional funds of

$500,000 in a prepaid travel . It should be noted the deposits were not “promises” to buy

tickets, but cash committed for travel on Delta. Yakima will develop a similar program

for the Two Year Strategic Plan using a prop rietary gift card concept. Even though the

$4 50 ,000 will be funded, for purposes of this Application, it is being defined as In

- Kind

source of funds.Application of The City of Yakima Under the 2013 SCASD Grant Program

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### Strategic Plan Cash Budget

– Year 1 (9/13

- 8/14), Year 2(9/14

- 8/15)

Source of Funds

Year 1 Year 2 Total

US DOT SCASD Program $ 185,000 $ 215,000 $ 400,000

Airport

Cash $

- $

- $

-

In

- Kind Waive Landing Fees $

- $ 25,000 $ 25,000

Waive Rents/Gate Fees $

- $ 25,000 $ 25,000

Non

- Airport

Cash Fly YKM $ 90 ,000 $ 1 10 ,000 $ 200,000

In

- Kind Marketing & Promotions $ 100,000 $ 100,000 $ 200,000

In

- Kind Travel Card Program $ 125,000 $ 125,000 $ 250,000

Total Cash $ 275 ,000 $ 3 25 ,000 $ 600,000

% Cash US DOT 67% 67% 67%

% Cash Non

- Airport 33% 33% 33%

Total In

- Kind Non

- Cash $ 225,000 $ 275,000 $ 500,000

Total Funds $ 500 ,000 $ 600 ,000 $ 1,100,000

% Total US DOT 38% 35% 36%

% Total Non

- Airport 62% 65% 64%

Uses of Cash Funds

Year 1 Year 2 Total

In Yakima

Catchment Area Print $ 10,000 $ 10,000 $ 20,000

Broadcast Media $ 15,000 $ 15,000 $ 30,000

Outdoor $ 5,000 $ 5,000 $ 10,000

Web Banners $ 15,000 $ 15,000 $ 30,000

Social Media $ 5,000 $ 5,000 $ 10,000

Public Relations

- News Releases $ 5,000 $ 10,000 $ 15,000

Travel Promotions $ 20,000 $ 25,000 $ 45,000

Administration $ 20,000 $ 20,000 $ 40,000

Outside YKM Area

Broadcast Media $ 50,000 $ 60,000 $ 110,000

Print $ 30,000 $ 30,000 $ 60,000

PR

- Studies $ 10,000 $ 20,000 $ 30,000

Airline Programs

Advertising & Administration $ 40,000 $ 60,000 $ 100,000

Airline Web Site $ 10,000 $ 10,000 $ 20,000

Inflight Magazine $ 15,000 $ 15,000 $ 30,000

Incentives $ 25,000 $ 25,000 $ 50,000

TOTAL $ 275,000 $ 325,000 $ 600,000Application of The City of Yakima Under the 2013 SCASD Grant Program

Docket DOT

- OST

- 2013

- 0120 Page 19 

### Airport Status

YKM Current Airport and Planned Improvements

Currently the airport has five active projects which are:

 Airport Master Plan Update

 Terminal Apron Rehabilitation

 Taxiway Alpha, A1

- A5; Taxiway B, C Partial (between Runway 9/27 and Taxiway

Alpha) Rehabilitation; Taxiway Lights & Signs; Segmented Circle

 Snow Remo val Equipment Purchase (Carrier & Broom, Multi

- Function Tractor)

 Land Acquisition of approximately 3.0 acres for additional hangar spaceApplication of The City of Yakima Under the 2013 SCASD Grant Program

Docket DOT

- OST

- 2013

- 0120 Page 20 All projects are funded through the Airport Improvement Program (90%) with a

Passenger Facility Charge match (10%).

T he airport currently has two airline ticket counters (Alaska and one vacant) with

facilities supporting both operations (baggage belts, baggage sorting areas, operations

area, etc). The terminal has one baggage claim area and also one screening lane for

p assengers to traverse from the public area to the sterile area.

Inside the sterile area (concourse) there are five passenger gates to support

approximately 4 aircraft parking slots. All passenger loading is ground up or air stairs is

used for larger air craft. The airport has short term, long term, cell phone parking lots as

well as a Rent

- A

- Car lot for Budget, Hertz and Avis. Employee parking lot is located

just west of the terminal building to provide support staff with ample parking. Following

is a diagram (floor level) of the terminal that explains the layout.

From an operational standpoint the terminal can operate normally with the

addition of another airline an d increased passenger numbers.Application of The City of Yakima Under the 2013 SCASD Grant Program

Docket DOT

- OST

- 2013

- 0120 A APPLICATION UNDER

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT

- OST

- 201 3

- 0120

SUMMARY INFORMATION

All applicants must submit this Summary Information schedule, as the application

coversheet

, a completed standard form SF424 and the full application proposal on

www.grants.gov

.

For your preparation convenience, this Summary Information schedule is located at

http://www.dot.gov/policy/ aviation

- policy/small

- community

- rural

- air

- service/SCASDP

A. P ROVIDE THE LEGAL SPO NSOR AND ITS DUN AND BRADSTREET (D&B) DATA UNIVERSAL

NUMBERING SYSTEM (DUNS) NUMBER

, INCLUDING +4, EMPLOYEE IDENTIFICAT ION NUMBER

(EIN) OR TAX ID

.

Legal Sponsor Name: Sean Hawkins City of Yakima, WA

DUNS Number: 078212651

EIN/Tax ID: 91

- 6001293

B. L IST THE N AME OF THE COMMUNITY OR CONSORTIUM OF COM MUNITIES APPLYING :

1.

____ C ITY OF Y AKIMA

, WA_

_____________________________

2._____________________

_______________________________

3.____________________________________________________

4.____________________________________________________

C

. P ROVIDE THE FULL AIRP ORT NAME AND 3

- L ETTER IATA A IRPORT C ODE FOR THE

APPLICANT ( S ) AIRPORT ( S ) (O NLY PROVIDE CODES FO R THE AIRPORT ( S ) THAT ARE ACTUALLY

SEEKING SERVICE ).

1. Yakima Air Terminal

– McAllister Field

YKM 2

.

3

. 4

.Application of The City of Yakima Under the 2013 SCASD Grant Program

Docket DOT

- OST

- 2013

- 0120 B D. L IST THE 2

- DIGIT CONGRES SIONAL DISTRICT CODE APPLICABLE TO THE SP ONSORING

ORGANIZATION

, AND IF A CONSORTIUM

, TO EACH PARTICIPATIN G COMMUNITY

.

1. WA

- 04 2

.

3

. 4

.

E. A PPLICANT I NFORMATION : (C HECK A LL T HAT A PPLY )

Not a Consortium Interstate Consortium Intrastate Consortium

Community now receives subsidized Essential Air Service

Community (or Consortium member) previously received a Small Community Air

Service Development Program Grant

If previous recipient: Year of grant (s) : N/ A

F

. P UBLIC /P RIVATE P ARTNERSHIPS : (L IST O RGANIZATION NAMES )

PUBLIC PRIVATE

1. City of Yakima, WA 1. FLY YKM Air Alliance

2. County of Yakima, WA 2. Greater Yakima Chamber of Commerce

3. 3. Yakima Lodging Association

4. 4. Yakima Convention & Visitors Bureau

5. 5. Friends of Yakima Airport

G

. P ROJECT P ROPOSAL : ( CHECK ALL THAT APPLY )

Marketing Upgrade Aircraft New Route

Travel Bank Service Restoration Subsidy

Surface Transportation Regional Service Revenue Guarantee

Launch New Carrier Start

- up Cost Offset First Service

Study Secure Additional Service Other (explain below)

Improved schedule, added frequencies to existing Alaska/Horizon SEA service. Tag SEA

- PDX

to the existing service.Application of The City of Yakima Under the 2013 SCASD Grant Program

Docket DOT

- OST

- 2013

- 0120 C H

. E XISTING L ANDING A IDS AT L OCAL A IRPORT :

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other (specify)

I

. P ROJECT C OST : D O NOT ENTER TEXT IN SHADED AREA

L INE D ESCRIPTION S UB T OTAL T OTAL A MOUNT

1 Federal amount requested $400,000

2 State cash financial contribution $0

Local cash financial contribution

3a Airport cash funds $0

3b Non

- airport cash funds $200,000

3 Total local cash funds ( 3a + 3b ) $200,000

4 TOTAL CASH FUNDING ( 1+2+3 ) $600,000

In

- K ind contribution

5 a Airport In

- Kind contribution ** $ 50

, 000

5b Other In

- Kind contribution ** $ 4 50 ,000

5 TOTAL IN

- KIND CONTRIBUTION

( 5 a + 5b ) $500,000

6 TOTAL PROJECT COST ( 4+ 5 ) $1,100,000

J . IN

- KIND CONTRIBUTIONS**

For funds in lines 5a (Airport In

- Kind contribution) and 5b (Other In

- Kind contribution), please

describe the source(s) of fund(s) and the value ($) of each.

5a Airport In

- Kind Contribution: Waiver of Landing Fees and Rents in Year 2 of the Strategic

Plan for the first year of a new entrant airline.

5b. Other In

- Kind Contribution: FLY YKM Prepaid travel from up to 90 local businesses to

commit to air transportation from Yakima Air Terminal over the 2 year period of the Plan. Total

anticipated deposi ts into the account are $4 50 ,000.Application of The City of Yakima Under the 2013 SCASD Grant Program

Docket DOT

- OST

- 2013

- 0120 D K

. I S T HIS A PPLICATION S UBJECT T O R EVIEW B Y S T ATE U NDER E XECUTIVE O RDER 12372

P ROCESS ?

a. This application was made available to the s tate under the Executive Order 12372

Process for review on (date) _____________.

b. P rogram is subject to E.O. 12372, but has not been selected by the s tate for review.

c. Program is not covered by E.O. 12372.

L. I S T HE A PPLICANT D ELINQUENT O N A NY F EDERAL D EBT ? (I F “Y ES ”, P ROVIDE

E XPLANATION )

No Yes (explain)

_____________________________________________ _________________________________

______________________________________________________________________________